There are over 170 dividend ETFs in the U.S. and many are
Despite volatility on the interest rate front that pressured
some previously income-generating sectors like consumer staples
and utilities, investors have continued to pour cash into some
dividend ETFs, particularly the largest dividend ETFs.
Year-to-date, the Vanguard Dividend Appreciation ETF (NYSE:
), the SPDR S&P Dividend ETF (NYSE:
) and the iShares Select Dividend ETF (NYSE:
) have raked in over $4.6 billion combined.
Some Dividend ETFs Prove Sturdy As Rates Rise
Some international dividend ETFs have been solid performers
and impressive gathers of assets as well. For example, the
iShares International Select Dividend ETF (NYSE:
) is up almost nine percent this year and has attracted over $956
million in new assets. IDV is just one example, but amid the
spate of new dividend ETFs that have debuted this
are some interest global options. Just look at the following
SPDR S&P Global Dividend ETF (NYSE:
) WDIV, which debuted in late May, tracks the S&P Global
Dividend Aristocrats Index. That is the global equivalent of the
index that SDY tracks, but in the case of WDIV its index only
includes companies "that have followed a managed-dividends policy
of increasing or stable dividends for at least ten consecutive
according to State Street
. Companies in SDY have to dividend increase streaks of at least
Although WDIV has just $6.45 million in assets under
management, it has returned seven percent since its debut.
Investors should note with WDIV "global" does not mean "ex-U.S."
as the U.S. is the ETF's largest country weight at almost 18.1
percent. Canada, the U.K., Australia and France round out the new
fund's top-five country allocations. Financials, utilities and
industrials combine for over 64 percent of WDIV's sector
While dividend increase streaks
should not be the lone determining factor
in selecting dividend ETFs, many income investors find comfort in
knowing companies they are considering investing in consistently
boost payouts. That bodes well for WDIV's long-term staying
WisdomTree Emerging Markets Dividend Growth Fund (NYSE:
) The concept of dividend growth is not confined to developed
markets. Recent emerging markets dividend growth, which has come
with a growing number of dividend ETFs, proves as much. DGRE
debuted in early August, but is already off to a decent start
with over $15.8 million in AUM.
While the fund aims to capture dividend growth, it does not
rely on dividend increase streaks as a way of doing so. Rather,
DGRE qualifies as one of a growing number of
fundamentally-weighted ETFs that embrace different weighting
methodologies. DGRE constituent companies are evaluated on
long-term earnings growth expectations, return on equity and
return on assets in an effort to find what emerging markets firms
will be great dividend payers in the future, not yesterday.
Valuation fans will like this ETF because some of the
countries that have the
the lowest P/E ratios
in the MSCI Emerging Markets Index are well-represented here.
That group includes Brazil, Russia, China and Turkey, which
combine for more than 37 percent of DGRE's weight.
For more on ETFs, click
Disclosure: Author does not own any of the securities
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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